I’m riding a losing trade, What should I do?

by Corbin Layton and Rob Booker

Have you ever said to yourself, “Well, going long (or short) the EUR/USD looked good at the time I took the trade!“

Perhaps you’ve had an experience where for the past several weeks, you’ve been haplessly watching a poor little EUR/USD trade spiral out of control to the point where you can hardly contain pulling your hair out by the roots. You’ve witnessed this innocent little trade morph into a horrifying beast which you are now referring to as the “drawdown monster.”

We’ve all been there, haven’t we? Paralyzed by fear or — if you’re anything like me sometimes — just stubbornly unwilling to admit defeat and close the darn trade. It’s a difficult thing to confess when we’re wrong, but at what point do we say enough is enough?

So, the question is simply this—what should my next move be? How long should I hang onto this trade that just seems to be going from bad to worse to absolute train wreck? Should I cut my losses and consider it a painful lesson learned or do I hang on to this bad boy and hope it comes back? Stranger things have happened, right?

Well, let’s put something into perspective.

Losing Money

Let’s say I have ,000 in my margin account and I lose ,000. My drawdown in this case would be 50 percent. Now, what percentage of that ,000 would I have to make in order to get back my original ,000? 50 percent, right? Wrong! I would have to make back 100 percent of my ,000 to get back to my original ,000!

The point of this harrowing example is this—it’s very easy to lose money and a whole lot harder to get it back.

“But Rob, I would never lose 50% of my account in one trade.” For your sake, I certainly hope not. But for the sake of argument, let’s just say you do. How on earth do you get yourself out of this pickle?

Perhaps this question is best answered through the sad and forlorn tale of my good friend and currency trader, Shasty McButterknuckle, who is actually the alter-ego personality of a member of the marketing department at IBFX.

Shasty has a heart as good as his intentions, but he perpetuates three tendencies that seem to get him in trouble and constantly keep him in the red:

Tendency #1—A little thing called pride!

Shasty has a penchant for hanging on to trades for nothing more than his heightened sense of ego. He is so committed to proving that his original decision was right that he’s willing to stubbornly cling to it until the very end. And interestingly enough, the more pips he loses, the more convinced he is that his original premise was justifiable. Shasty holds on to losers in an effort to prove that he was right—both in his own eyes and in the eyes of others.

Solution: There should ALWAYS be a reason for your trading moves. A decision based on ego will inevitably come back to haunt you. A trader who fails to maintain a strict trading plan won’t know where to exit a trade or how much money he could make or lose. This “fly by the seat of your pants” style trading more often than not leads to disappointment and frustration.

Tendency #2—Adding to losing positions

Shasty sometimes not only holds on to a losing trade but also actually adds positions to it, rationalizing that his targets will be hit when the currency changes direction. Of course, this method is super-terrific if the currency does, indeed, change direction, but if it doesn’t and he maintains that losing position, it simply hastens the painful demise of that poor little trade.

Solution: Adding to losing positions in order to “save yourself” is an entirely different ballgame than doing so because it’s a valid part of your trading strategy. If a trader is adding positions for the right reason, the key to remaining competitive lies squarely within his psychological ability to ride out a big drawdown—a feat that should never be taken lightly—and then allowing the trade to reach its maximum potential.

Tendency #3—Loyalty

Perhaps Shasty’s biggest downfall is his undying love and commitment to a particular currency pair. In this case, his strength is also his weakness. His sense of loyalty holds him back from making sound, educated trading decisions.

Solution: Fundamentally speaking, your feelings about a given currency pair don’t mean squat. The key to remaining competitive in Forex trading is allowing the market to tell you about the currency and then pouncing, not vice versa. Give more weight to what is happening in the market than to your attachment to the pair.

So, we find ourselves back at the beginning—Riding a losing trade and wondering what to do next.

A dear friend once told me, “Wise people learn from their own mistakes, but super wise people learn from the mistakes of others.” So what can we learn here? Firstly, don’t trade like Shasty! Be ye not so foolish. Learn from his mistakes and your margin account will thank you.

Secondly, take heed to these sound trading principles:

• Grasp a bigger picture perspective on the market. Before you begin trading for the day, have a look at the weekly and/or monthly chart. They can often provide you a broader perspective of a particular currency pair.
• Accept responsibility for your own actions. When you have a losing trade, don’t look for others to blame. You made the decision to place the trade. You control your trading destiny. You and you alone.
• Maintain a strict adherence to sound money management. Buying into the “get rich quick” scheme of Forex trading has left countless numbers of traders with dwindled margin accounts. Manage your assets well and you will be a much happier—and much more competitive—currency trader.

We’re experiencing a once-in-a-decade event in the Forex market, my friends, and it isn’t going away anytime soon. An extraordinary confluence of events has thrown nearly every financial market into chaos and, sadly, Forex was not immune. I’m reminded of a rather macabre but ever so appropriate phrase I once heard that went a little something like this—adapt or die.

Drawdown is a painful reality in Forex trading and despite how much you punch, kick, and fight, it will undoubtedly happen to you at some point. It’s up to you to decide how you’ll handle it. It can make you angry and vengeful or it can make you wiser and more disciplined. I can’t speak for you but I most certainly prefer the latter.

As fellow currency traders, we always welcome your thoughts, comments and questions. We’re always here to help.

Happy trading!

Corbin (from the U.S.)
Rob (from Dubai, UAE)

Learning to Stop Trading

We talk a lot in the trading world about when to trade; we talk about entries and exits and profit targets and stop losses and moving average crossovers. There are endless threads on massive online discussion boards about trading the news, or whether inside price action “Wicked Fairy” candles are better than “Samurai Warrior Face” inside bars. The arguments about the best place to get into a trade are so extensive that, by now, it’s difficult to tell the difference between the methods.

But we don’t talk enough about when it’s time to quit.

I found that learrning when to stop trading was just as difficult — or maybe more difficult — than knowing when to take a trade in the first place. For me, one of the real breakthroughs in my trading was when I realized that I didn’t have to trade, that not every day (or every hour) was suitable for trading, and a day off could be just as valuable as a day spent staring at the dual-screen setup.

The fact that the currency markets are open nearly 24 hours a day for 5.5 days per week — and that a holiday in one country doesn’t necessarily shut down trading for the rest of the world — makes it very tempting to open up the trading platform at nearly any time of the day.

You’ve certainly got to make your own decisions about what’s right for you in your trading, but here are some ideas about why it’s a good idea to stop, or when the right time might be.

Stopping when you’re losing money

This is probably the hardest thing to do, and I’ve seen hundreds of traders lose more money than they ever thought they could, or wanted to, because they just simply couldn’t stop trading when the chips were down.

For example, when we’ve just lost money, we often react hyper-emotionally. I know that when I have a losing trade (especially one that happens really quickly), I want the money back right away. And that desire to get the money back right away leads to a nearly overpowering urge to trade again — now that I’ve seen where the market is really going (or at least that’s what I am thinking), I want to take advantage immediately.

If I can get that money back right away, then I don’t have to suffer any indignity that comes with a losing trade.

The truth is that we rarely recoup all those lost profits back in one big counter-trade, or one big “reaction” trade. This can be the type of situation where we start spiraling out of control, taking trade after trade and losing a significant amount of money.

It’s sometimes just best to quit for a bit when we have lost. This might be for an hour, for a day, even for a week or month. This time away from the market can give us the space we need to think clearly and get ourselves in a productive state of mind again.

Stopping when we are hyper-emotional

One of the worst times to trade is when we’ve had a distressing experience. Ever made a trade after you’ve had an argument with your spouse or partner about money? Or when you’ve had a particurarly tragic event in your life?

These can be terrible times to trade, because our focus is on the recent emotional experience, and not on what we’re doing. When we’re not focused or attentive, we make stupid mistakes that can cost us a lot of money.

I have seen emotional traders remove stop losses to “prove a point,” or get back at someone through their trading. The trading becomes an expression of their emotions, or an outlet for feelings that they can’t say, or didn’t say, or can’t express in any other way.

The market, unfortunately, doesn’t know us personally and couldn’t care less about our individual difficult life experiences. It’s not going to give us a break or go easy on us because we’ve had a bad day.

So if you’ve had a bad experience, consider taking some time to sort out your feelings before you fire up the trading account.

Stopping when we’ve made money

This might sound strange at first, but it can be one of the most powerful additions to your trading plan: a goal for when you are going to stop trading if you’ve made money.

Perhaps you set a goal to make 50 pips a week, or a month. That’s a goal, mind you, and I’m not implying that everyone or anyone can make 50 pips, or that the majority of traders can make that many pips (remember, trading forex is risky, and the majority of traders lose money — that’s a topic for another week) . The fact is, I don’t know what the right number goal-wise is for you. But if you look back over your trading history, can you start to get a sense for what you are able to achieve, if you are a profitable trader?

I have seen traders, time after time, start the week off strong, and get to Tuesday or Wednesday with a reasonable amount of profit, only to see them lose the money in reckless trading during the rest of the week.

In fact, some of these traders consistently lose money week after week, even though early in the week — for most weeks — they are actually profitable.

We sometimes treat profits as “found money,” or money that we can afford to lose. We have a few winning trades and then we give ourselves room to take an “experimental” trade, or a trade just for the hell of it. This is tantamount to gambling.

Idea: go back in your account and see if you recognize a pattern of making money during the beginning of the day, week, or month. Are you more successful at the start of the week or the end of the week? In what ways are the trades you take different at the start of the day compared to the end of the day? Or week? Or month?

Question: Does this mean that there’s never a good time to trade?
It sounds like it’s always time to stop!

Trading is not right for everyone. And trading all the time is probably not right for many people at all.

But that doesn’t mean that stopping your trading before you start is a good idea. I’m not saying that there are never good times to trade. Here are some thoughts:

1. Consider having some quiet time at the start of each day before you trade. My friend Chris McCloughlin has a rule that he never trades unless he’s been awake for an hour — because he realizes (big surprise) that he doesn’t trade well if he is super tired.

2. Measure your emotional state. This doesn’t have to be a sit-down with a professional therapist every time you are about to trade. But it’s not so difficult to take a moment and gauge your own emotional state at the start of the day. If you think you’re a complete wreck today, maybe it’s a better day to go feed the ducks. Or see a movie.

3. Have a trading plan, and use it. Make a version of your trading plan that you can keep near you, or keep you focused. Not every trader needs to have the entire plan in plain sight, but most of us can benefit from a regular reminder of what kind of trades we’re looking for. It’s important to allow yourself to be picky with your trades and wait for the setups that you know you like best.

4. Are you a better trader at a certain time? When you go back through your trade history, do you recognize times that you are more successful? It doesn’t have to be a time of day or day of the week; it could be near the time of some fundamental news. It could be around the time when the currency pairs you watch consolidate in a specific pattern. Recognizing when you do best as a trader can help you get more specific about when you are going to dedicate time to take and manage your trades.

Do you really need to do all this analysis, or all this thinking about stopping and starting your trading? Maybe that’s not your thing. And it’s up to you how deep you go into efforts to learn more about yourself and your trading. I’ve found it to be true that this kind of deep thinking about what you’re doing pays personal dividends — regardless of how useful it is specifically to your trading. I hope you’ll consider some of the things I’ve mentioned here.

Most of all, I invite you to keep in touch with me about this topic, and let me know what you’ve learned about the best times that you trade, or how you know when it’s time to stop trading. We always love to hear from you, and the folks at IBFX are here to talk with you anytime.

Happy trading!

ZuluTrade Top Forex Signal Providers For Week of Nov 14 2008

Hey everyone. Here are the top ZuluTrade forex trading signal providers for this week ending Friday November 14, 2008. My account is down 561 pips :( This crazy market volatility is really challenging. Anyways, without further ado here are the top performing signal providers:

Top Signal Providers for this week:
fxtrader7 277 pips ,403.06
hehehe 986 pips ,363.77
Forest Fx Capital 476 pips ,111.43
newdoug 500 pips ,291.99
MillionaireCMG.com 2032 pips ,539.95

Wow, 2032 pips coming from MillionaireCMG. That’s quite an impressive result. I’m going to keep an eye on this signal provider and if they keep up this stellar performance I will add them to my ZuluTrade portfolio.

How To Select A Forex Broker

If you’re thinking of trading FOREX, you’ll need to set up an account with a FOREX broker. Most traders use a broker to handle their transactions. It’s easy to feel overwhelmed by the volume of brokers offering online services. Before selecting a broker, it’s best to take the time to carefully research your options. Become knowledgeable about the available services and the fees charged by various brokers.

Brokers are the people or companies that buy and sell orders according each investor’s selections. Brokers make their living charging commissions or fees for their services.

You could, of course, attempt to decide on a selection of online brokers by getting in touch with their Internet help-desks and see how promptly they respond to your inquiry. You can check out whether their answers to your questions satisfy you. Remember, pre-sales service is likely to be better than post-sales service. This can be the case with any online business, not with just brokers.

Word-of-mouth advertising is always the most believable, and is applicable to FOREX trading as well. See who your family, friends and colleagues are working with and what, if any, complaints or problems they’ve experienced with different brokers.

You will want to be aware in advance about any fees involved. What is the spread and is it fixed or variable according to the type of account? Are there wider spreads for mini accounts? What other charges are there? Smaller spreads equate to higher profits for traders, but there may be a trade-off with poorer service.

Customer satisfaction and safety are part of the equation. Online brokers are supposed to offer automatic execution and have clear policies regarding slippage. They should be able to anticipate how much slippage to expect in both run-of-the-mill and fast-moving markets. You’ll want a broker that responds quickly with minimum slippage.

Margin accounts are the bread-and butter of FOREX trading. Things you’ll need to know include the margin requirements, how it’s calculated, does it vary with the currency traded and is it always calculated on the same of the week? Some brokers offer different margins for standard and mini accounts. Be sure you’re familiar with your broker’s margin terms before establishing an account.

Above all else, look for dependability and the facility to maneuver well in dynamic markets. Moving software is vital to online FOREX traders. The software should offer automatic trading. It may include trailing stops and trading from the chart special features or they may come attached to an extra fee. Be sure you know in advance what your trading needs are and what your broker charges for them. Check out the opportunities available by testing a demo account with a selection of online brokers.

It’s also a good idea to learn whether the broker insures clients’ funds and the scope of the insurance. Other research should include the broker’s policy for minimum account balances, interest payments on account balances, which currencies can be traded and whether non-standard sized lots can be traded.

A FOREX broker should be partnered with a large financial institution such as a bank to facilitate providing the funds essential for margin trading. In the United States brokers should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

The bottom line is to gather all this information and then look at the overall picture before deciding to go with any particular broker.

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A New Look at Exit Strategies

Author: Chuck Le Beau
Running Time: 90 Minutes

Many new traders - the majority, in fact - suffer big losses because of a lack of planning and understanding in setting up a sound exit strategy. In this important new exclusive DVD, well known trader and author Chuck Le Beau reveals the methods he has used for years as a successful institutional trader.

Classic Indicators - Back to the Future

Author: Linda Raschke
Running Time: 90 minutes

Charismatic professional trader Linda Raschke employs classic methods handed down by the forefathers of technical analysis. Join in and let Linda guide you in a first rate keynote address given at a recent international trading conference. Get back to the basics and refine your skills by seeking the wisdom of a proven market wizard. Class Indicators is for everyone. Whether you are s short term trader in the S&P 500, enjoying trading stocks or just a student of the markets, you’ll love this exclusive DVD. Recognized in Jack Schwager’s own classic, “The New Market Wizards”, Linda shares her favorite trading techniques in a 75-minute DVD presentation you’ll watch over and over again. Learn valuable techniques, how to stay disciplined and what it takes to keep you running at full speed!

I Am A Turtle

Author: Russell Sands
Running Time: 93 minutes

Russell trades the same way that he always has, following trends the way Richard Dennis taught the Turtles to do fifteen years ago. Russell shows you the exact criteria that the turtles were taught to use in order to get a handle on which breakouts or types of breakouts have a higher probability of succeeding - which have the potential to become the kind of monster trend the Turtles are famous for riding to enormous profits. In this seminar, Russell itemizes a list of approximately twenty different criteria and/or conditions that the Turtles examine every time they look to initiate a trade. He explains each item carefully and demonstrate the effectiveness of each by looking at current charts of various markets.

Avoid Common Trading Pitfalls

Author: Mark Cook
Running Time: 85 minutes

In this fast-paced DVD, trading champion Mark Cook shares his ideas for making winning trades. As the first place finisher in the options division of the 1992 U.S. Investing Championship, Mark credits research, planning and an attention to detail for his astounding 536% return. In this presentation, Mark reveals how he uses common sense and hard work in just the right proportions to dramatically improve his trading success. After viewing this tape, you’ll come away with a realistic perspective on how much money you can expect to earn with your trading and how much time you’ll need to spend to achieve your goals.

Why isn’t there a forex currency index?

Just like the stocks are combined into NASDAQ for example, then why can’t you combine the forex pairs and assign them a mathematical value???

Take a look here:
http://www.fxstreet.com/rates-charts/currencies-glance/

Fxstreet lists 34 forex pairs.

Benefits:
- Less risk.More pairs - less risk. Traders will take advantage because the market is open day/night in contrast to the daily trades among the stock market. That said, the forex traders gain several times more action with reduced risk, thanks to the combination of many pairs at once. No surprises anymore:Think about it: The european bank annouces higher rates, but the expectations were for lower rates. So, if you trade EUR/USD you will lose when you have selled. With such important news you will lose perhaps over 50 pips and if you trade on 100:1 leverage buying more than 1 lot…say goodbye to your money. Even without leverage the big players will lose, unless they utilize some industrial espionage to predict the rates that are going to be anoounced. So…if the one pair goes higher with 50 pips, else will go downtrend with 50, which keeps the balance. Of course if the balance is perfect 50/50 the index won’t move and you will not benefit at all :), but in case where you have 50/25 you get your 25 or less if your predictions are in the right direction.

There is one drawback, of course, like anything in life :): With so many pairs it will be impossible to rely on any news announcements. Your only hope will be the candlestick chart, perhaps combined with some additional mathematical technics(martingales, random walk avoidance, compound interest) and economical such(hedging, options..).
But isn’t the technical data the favourite to the forex traders?

So far, sadly there isn’t a “forex index” to my knowledge??? So the best you can do is simply make your own “portfolio” and assign it a mathematical value.

I plan to create a computer program(…a can do that ;), to calculate and trace such index value of about 40 forex pairs. If I succeed, I will post it here with link to website to see the index in action :).

Thanks.

As function of how the currency exchange market works it is not possible to make an “index” of foreign currencies as the value of each currency is relative to the currency it is compared to. This means that the same Euro for example may be worth .27 US dollars but at the same it it is worth, 122.40 Yen, and 0.8133 British Pounds. Thus a single index for a world wide market is extremely difficult and would in fact be useless, as there are too many currencies world wide to deal with. Further, which currencies would be chosen to make up the index and on what basis, and by who’s decision, under the authority of which country?

There is however an “index” of the U.S. Dollar which measures the dollar’s value against a “basket” of other currencies. The ticker symbol is NYBOT:DX. This allows you to see the strength of the US currency compared to a weighted geometric mean of the Japanese Yen, Euro, Great British Pound, Swiss Franc, Canadian Dollar, and the Swedish Krona.

I believe there are foreign currency brokers in the US that allow you to trade this fund as you would any other stock or index.

Tips in forex I like best

# No one stronger market
# Transactions based on market trends instead of just focusing determine the highest point and the lowest price
# There are at least 3 trends of the market: the trend to increase, decrease trend and the trend is stable. You must have a separate strategy for each trend.
# Dung outside markets is also a 1 in the strategic needs of you.
# Buy quickly sell quickly when the market tends up or down.
# A signal to buy end with a sells signs and vice versa.
# Analysis of the failure of you and to draw lessons from it. All your lessons are expensive price, and you have to pay for it.
# Use the principles of money management.
# No transactions of loading and unloading, must have a plan
# Never leave your account must be in touch "margin call"
# Transaction model Pattern: revesal model, a model Exhaustion, and models breakaway always appear. Learning how to see the model in all transactions.
# KISS - Keep It Simple Stupid, more complex does not mean better but vice versa.
# Buy according rumored, sold by information "Buy The rumor, sell the news".
# Time is the decisive factor in currency transactions.
# Strategy "buy and hold" does not exist in the forex market.
# Always have 2 accounts. 1 My Item real and 1 virtual account. The study will not stop
# Analysis basic research causes of changes in the market, while technical analysis assessing the impact of the fluctuations that.
# In foreign exchange transactions, 4 points need to create a new model triangle (Triangle). Remember that 2 points to determine the direction of 1 cent.
# Road average (The Moving Average) is the only market that follow, not lead the market. It is not appreciated and only react to market. Only average for me know the starting point of a trend, but only after the trends that took place.
Cat # lose reduce losses is very difficult for the transaction. The ability to cut holes to lose the right skills are on the investors wire experience.
# Models is great concern because it is very common: Start Vai, 2 peak, Gap, Co, Gay support, can overcome, Triangle.
# Elliot Wave Theory - 1 trend, including 5-step waves is 1 han long trend
# Elliot Wave Theory - Quantity waves depend on the chain Finobacci
# Elliot Wave Theory - the market can not lower the bottom of the 4th wave.
# Elliot Wave Theory - Step 4 is not the wave lan waves through step 1.
# Support and resistance most efficient tool to identify and point to the market. To use the tools cogn block holes, chart support and protect important one.
# One of the industries affected most by USD is gold market. Prices of gold and USD often changes in the rate of one another.
# Dong Yen sensitive to changes in prices and the impact of market raw materials.
# The national production (Canada, Australia, N. Zealand) depends a lot on Japan than other countries.
# Dong Yen sensitive to forecast the Nikkei index, the Securities and Japanese real estate market.
# Dong money GBP (UK $) is managed in London will often be dropped reduction in U.S. markets, and sold small drops in Asia. Therefore, in New York, the banks stopped the price of lunch in the middle of GDB.
# Market transactions of the world’s largest London is occupied 32% of total market, New York with 18% and 8% with Tokyo. Followed by Singapore with 7%, 5% for Germany and Switzerland, France, Hong Kong accounted for 4% each country
# Do not use the market to meet demand đùa your pleasure.

Start with Forex - Part 2

The reasons for FOREX market is always more popular stock market and increasingly more investors to more areas FOREX:

- FOREX markets operate 24 hours a day So with only 7 ½ hours in Stock Market

- In the FOREX market, no one can control the market.

- In the FOREX market, no money fee (Commission Fees).

- In the FOREX market, you will easily Short (Sell) than the Stock Market

- In the FOREX market, no-love for you to have minimum capital is how much the account can be purchase per day (Day Trader). Compared to the stock market (stock market) you must always have a minimum of U.S. $ 25,000 in the account, the new sales per day (Day Trader).

- In the FOREX market, you can open an account giả (Demo Account) for the purchase, before opening a real account (Real Account).

- Lever rate deposits [leverage] In foreign exchange market, with a small deposit you can make transactions with a value greater than many times. Application you will need to gain significant profits, while minimizing the financial risk. For example, the foreign currency brokers can provide you with lever 1:100, meaning that you only need to take is U.S. $ 1000 can buy or sell foreign currency worth U.S. $ 100,000. Similarly to U.S. $ 5000 account transactions is U.S. $ 500,000. However, the need is the double-edged. If you do not effectively prevent risks, the proportion of the growing weight can cause damage as much as how it could bring profits.

- City high Item: As foreign exchange markets are very large scale, so the bar very high account. This means that the conditions in transactions generally, just one click you can immediately make purchases and sales as you like. You will not be congestion transactions. Even, you can install the online transactions allow end automatically when the transaction reaches the level desired profit [Order limited interest] or when the transaction that caused unfavorable for you [order to prevent block holes].

- Transaction small and super small: the idea that you start conducting monetary transactions will take a lot of costs. Integration is actually not so, if compared to the stock purchase. The transaction broker currency trading provides transaction account with a minimum U.S. $ 300 or less. Although we do not recommend that you start an account with the minimum but it allows investors less money, without much capital can access the currency markets.

Start with Forex - Part 1

Forex is an abbreviation for "Foreign Exchange" also called "FOREX" or "Cash FX (FX Spot) or the" Cash "(Spot) is a market-in-hand to foreign currency-largest -World. Flowers-in period, average per day to about 30 billion dollars (30 billion) purchase exchange-change-on-entry of the New York Stock Exchange, but if so-match we will see this number still no larger than about the thousands of under 3 billion (3 trillion) buying and selling exchange-currency-exchange across the World-World (Foreign Exchange Currencies). The so-match was for us to see the Forex market-how great!

We then imagine a simple Forex, such as when we go to tourism-calendar or a European country that we need to change from-conversion of foreign-currency of the countries of our foreign -currency country’s local, so easy for us to-use. Forex is the "foreign-exchange currency" such that, just as our other hand-on the computer, we do not need to go where all! The more we exchange foreign currency to make profits not the money to drink.

A good-more like, for example-we are U.S. $ 100 (money-currency-term U.S.). We used U.S. $ 100 to change the money into Yen (money-currency of Japan).

-For example: * At the time 12:00 AM-points 10 months 06 days in 2007, U.S. $ 100 required to change the 12,362 Japanese Yen (U.S. $ 1 = 123.62 Japanese Yen). After the rules-change complete, we now no longer-at U.S. $ 100 in the bag again, we are 12,362 Japanese Yen.

* Then, at 12:00 AM 30 months 12, 2007, we used the 12,362 Japanese Yen are to change back into the USD. At this time because the value of the USD value is lost, so the rules-change against USD, from 12,362 Japanese Yen, we are to change the U.S. $ 122.00 (because at this rate 1USD = only change is 101.32 Japanese Yen ). So as we are a U.S. $ 22. (122 USD - 100 USD = 22 USD).

Instructions on Fibonacci in Forex

Fibonacci Arcs are built as follows: first, the trend line from the last two points, for example, from very elementary to the opposite extreme. Then, three service roads will be built with the same mind with the very first cut line and 2 trend Fibonacci level at 38.2, 50 and 61.8%. Fibonacci Arcs are seen as the way kids and kids need on the potential approach. Fibonacci Arcs and Fibonacci Fans are usually used together on the charts and reach store and access the store is determined by the intersection of the street.

Fibonacci Fan
Fibonacci Fan as a tool is built as follows: a trend line - for example drawing a line connecting the extreme points 2. Then, a vertical axis "invisible" is a drawing automatically passing points maksimum second. And 3 will be the trend line is drawing from the very first, the way this cut invisible vertical line at Fibonacci levels by 38.2, 50 and 61.8%.
The straight line is the line representing kids and kids need on the access. To be able to achieve higher efficiency in the predicted value, we should use other tools with Fibonacci Fibonacci Fan.

Fibonacci Retracement
Fibonacci Retracement road is built as follows: first, the trend line is draw between the two extremes, for example, from very elementary to the maximum points opposite. Then, 9 road cutting across the trend line in the Fibonacci levels 0.0, 23.6, 38.2, 50, 61.8, 100, 161.8, 261.8 and 423.6% are drawing. After a rate increase or decrease remarkably, the price will usually return to previous levels to regulate for the necessary (and occasionally to the completion) of change initially. Price often touches on the shop reach / access the shop at or near the Fibonacci Retracement levels in a process of change every time.

Fibonacci Time zones
Fibonacci Time zones are a series of vertical lines separated 1, 2, 3, 5, 8, 13, 21, 34, … The change is usually a strong close to this road.
To build this tool, to determine the 2 points to know the length of the distance unit. All other roads are directly based on the distance units and the Fibonacci numbers.

Fibonacci Expansion
Fibonacci Expansion similar to Fibonacci Retracement and used to determine the end points of the waves 3. Unlike Fibonacci Retracement, this tool is built not only based on a trend line, which is based on the wave 2.
First, directly on trends for the first wave, the higher it will be used as a unit distance. End points the second wave is the reference to a vertical axis invisible. The corresponding straight line is from reference points on the space by 61.8%, 100% and 161.8% of the distance units (defined as the first straight line). The third wave will end close to this level.

Fibonacci Channel
Fibonacci Channel is created by the trend lines in parallel. To build this tool, be wide of the channel used is substantial breadth units. Then, straight lines are parallel at the point of corresponding to the Fibonacci number sequence, starting 0618 is substantial breadth units, then 1000, 1618, 2618, 4236 … After the time the fifth wave, which be able to predict changes in trends.

Remember to use that channel and the Fibonacci-based way to limit the top of the channel when trend growth and the bottom of the channel when trend reduction.

Basket Trading System (T101 system)

And here is his trading system is named
"Simple Trading Method (Basket Trading Strategy)"

System is based on price action, indicator free trading and it is done manually.
My role here is only a person Introducing this system to you in hope that you can use this system for reference in process of developing your own trading system.

This system is based on the fluctuation of prices, do not use the forecast, the system is done manually, in other words to have to transactions rather than using automated programs to achieve good performance .
Role of I (happylife) here are only introducing this system to you to help you refer to in building a system of your own.

But now we will talk about Basket Trading System:

I (Pipscorer) how to use this transaction is 3 months, after the collected data by 2 years to observe changes of progressive and start applying to the actual transactions, results is also quite good. This system is quite simple and based entirely on changes in price - price action, not using forecasting tools and manual transactions (that is from the trade instead of auto trade).

You will first need to open a trade account try (predict account - Account Indicator - IA) and make sure that your broker "must have" Funding the following:

Most broker has radical follows:
1. GBPUSD 8. CADJPY
2. EURGBP 9. AUDUSD
3. GBPCHF 10. USDJPY
4. CHFJPY 11. EURUSD
5. AUDJPY 12. EURCHF
6. EURJPY 13. GBPJPY
7. USDCHF USDCAD 14

If your broker is interbankforex - IBFX will have the following pairs to perform hedging:
1. GBPUSD 8. EURUSD
2. EURGBP 9. USDJPY
3. GBPJPY 10. AUDUSD
4. USDCHF 11. NZDJPY
5. NZDUSD 12. GBPCHF
6. AUDJPY 13. CHFJPY
7. 14 EURCHF EURJPY

7 pairs of first group 1, 7 pairs following a group 2. The pair of variables when this will hedge each other (except for mutual compensation, because it will change back together). Group 1 will short - sell, and then Group 2 will LONG - buy. No set target or stoploss. At the bottom of the script that you can use to place orders at the same time to purchase 14 pairs of the same money at 1 to ensure time for radical open at the same time. Then click on the column in the profit of the order, to rearrange the pairs, then the food will pair are at the top and the holes will pair are at the bottom, or vice versa. At first the pair arranged quite intricate but after 1-2 days, the pair will arrange the right order of it. The pair will be long in the bottom end, the short will pair in the above, or vice versa. The process of waiting for this just waiting to shine deposition of mud under that.

After the pair were on location, in other words it really has to distinguish the 2 groups separately. (you can see pictures to know more). Then, if 1 pair is overrun border between the 2 pairs, which is progressive, we need attention. Here are 2 ways to trade:
1 / Trade any pair of the border pass between the 2 groups.
2 / Trade all 14 pairs. Buy or sell the same 14 pairs.

We should have 1 account other individual to perform the actual transaction. If progressive long overrun border, you can place orders to buy the 2 Funding beyond boundaries (1 pair for the switch down while the pair 1 below will have to move up). Setting the target depends on you, for me I use the EA Profit Protection to implement monitoring of order transactions.

Remember do not touch on the demo account because this account will be maintained as a tool of your case. Let this account to run and check the pair have overcome any money from the border, you can perform transactions.

Below, you can see the USDCAD pair overrun border, I made the transaction and earn some PIP from it. At the same time pair GBPUSD also be pushed down and be done buying transactions.

Will much about how the transaction we will discover more.
I hope that I explained how the transaction is fairly clear. Wish you luck.
Trader101

Note:
1) this method is manual .. Again manual … Indicator is fine.
2) I am trying to avoid any EA being made out of this system, indicators are welcome.
3) To those who will benefit from this method, my only request is to give TO CREDIT WHERE CREDIT is due this is given unselfishly free. Pipscorer/Trader10

The advantages of Forex

From how long this stock market is always a large playing field to attract people from the class for seniors to youth, from the university, you race to the popular classes. But the birth of Forex made for shares to cede the position in respect!
Forex so the advantage that so attractive?

1. Forex market is a diversified financial world:
Ko Forex market only to larger stock market, but also a lot more diverse lot. Approximately 4700 central banks and businesses, organizations and multi-national, the flooring trade, the wholesale and governments participating in this market daily. It has classes to attend this very diverse community with more market factors that do large a factor which can control the direction of Forex. This is completely different than stocks. As you see its stock of Vietnam’s past, just a small rumor can right a company or companies that bring skyrocketing. That is the nature of securities.
With Forex, you can be a even when markets go up or go down. The important thing to do is go up market or down, but the most important one in the Forex is you have to go with the direction of the market or ko. Therefore the principle of gold in Forex is "Go with the trend" (Together trend).

2. Financial market is open only 24 h during the day:
Forex can say is a market to overcome any limitation, a banking system, financial institutions, organizations, and Investment, the wholesale money and individual single worldwide are linked together to create a virtual market, operate 24 h day and 6 days a week. Like the internet and it was conducted using the internet. Therefore Forex which currently is earning money through the very "hot". Take the way of counter clockwise, when the floor closed this time is that other floor started on a new business. In other words, the Forex market is open from 5 h pm EST CN hours in Sydney to 4h pm Friday in New York.

3. Market with many changes in the world:
The continuous operation 24h with vast market of the Forex market is highly satisfied that, in a translation often has many changes. This is 1 point attractive to the large investor - because it helps players can freely open or close order as you order your own, 24hrs a day. As fluctuations of Forex especially with the currency pair of real help for the price more stable. Because participants always have the opportunity in order to open a good price. Remember that in Forex, you do have to find buyers like you invest in stocks. In financial markets this is the buyer and seller and you do not ever have to worry about "output" to your order.

4. Can be a market even follow any direction of any:
This factor I consider in this down but still want to remind you again. Advantages of the Forex is you can benefit even if the market is going towards. Ko it is limited by factors such as the sale of securities. In stocks you can and if a stock you buy on price only. This is because you are dealing with a currency pair. Means the currency purchased and sold other currencies should do what’s right based on the direction of the market. All have balance of the purchase and sale of collateral. Just "Together trend" that you can benefit. And even bought or sold, your ability to cash is a completely equal.
These are all advantages of the Forex market that makes this completely different fish.

04 Mar 09 I’m in forex? And the elements to become a successful trader

However ko trader must be a completely professional, but with a period of currency traders over a year I can accumulate a small capital. I do not know for the other trader is but for me, Forex is a real art. And when they "stick" to it, that really is a passion difficult to cut.

Due to that I say, trading is very much reflected in the people and your personality. Someone please say that each: There trader male, female trader, big trader, trader …

Because each trader has an individual personality, an individual plan, a private trading system, a number of funds and an ability to accept risk in particular. Therefore the trade of how each person is different, who do the same and one is generated from the yourself. Factors to help you successfully do that is the way you choose to do the analysis, use market analysis or to follow the analysis which is in you and in the strategy you choose. The way to bring victory for sure I do not have to bring success to you. Should be the same as the business of selling, to be successful you must have its own definition and put a lot of blood to the heart here. Because we are each a separate individual. And based on your personality, how to resolve each situation in your trade that you like is a factor to determine success for you.

To find out how your trade, you must find out how the features of your business. Definition of this type will decide your trade and the tools or analysis for you.

Ask yourself yourself you are like? Your patience or impatient, or you decide to guess text, you are still exacerbates or exciting, or have law ko and dare venture or ko. Or find themselves and overcome the weaknesses, promote the advantages of available friends. Therefore, you will be out of their way. One way you can find this easily is by writing signed Thursday by the trade you. Write today you do how much, how many died, why you win, why you lose and draw experience from.

It is therefore that the successful principles limit they have pips in a day and limit the number of PIP that they will lose. Indeed this is very simple because you have 2 wonderful tool is take profit and stop loss. These people who certainly do not go and adventurous red-tape venture. But the eyes of a trader other strategies this is not any other gambling a trader and the other people it is a code to. Ko are professional. This is the acceptable risk and the focus on a currency. They want every order to the vast numbers.

I also own a venture, like conquering the peak and the path you should choose for me how do the other relevant bit of time.
Finally, the other short-term trader also achieved success that many people dream. While those who call them as I am a firm has less to what they want.

Currency trading is a job it is "serious" to the center’s participants. For me as a trader requires you to have confidence in yourself, be confident in their choices because Forex is a market with many changes may be after the initial order will be losses a bit and then if you have the psychological need to do then you lose because of lack of understanding is that you lose own. But i have confidence that is horizontally opposed, persistent and acknowledge their error. When you see you are serious holes you must review your order open and if true that you went the wrong way then you must acknowledge the truth đấy. Persistence only do you lose to U.S. only. Some people will say to me wait, then please wait Republic capital only.

Right market with the fluctuation of the Forex will make you hòa capital is lost, but how long is important. Is when you do to reduce their capital by foot, while a place with that amount if you accept losing U.S. and investing in a currency other you can recover the funds it? Besides these factors, the players have to Forex are the very basic fields. Because if i have a fear in me one day you will be the market "early afternoon sunshine rain" this will make you lose heart attack. : D. And a factor can do more that is missing is patience because no real interesting tí when you have to sit and allowed the analysis best. It is only interesting when that money flows into the bag you.

Forex made me learn and discover the many yourself. It the daily trade I feel any more perfectly .. And perhaps that is cause for Forex become attractive than the other of money.

Here are some knowledge and opinions of individuals I hope it will help your part before entering Forex. Hope that you do not play read this article to make the choice should participate in the brain need to do this. The player then you have that is completely bring hope will help you to mind a bit. The pro, please comment for me to continue to improve themselves over.

Something helpfull for you

Learn to accept risk in forex

To be able to invest successfully with many things to think about, but one of the things to consider is finding a transaction by yourself, a way transactions bring results. But very difficult to find an effective suit you, because no one rules, regulations about what you should learn something. That led many people to take up direction when you do not know what to do before entering the currency market. But one thing that any one should know that your ability to accept risk to any degree, in other words is the amount you accept the investment risk is how much. It is a problem related to the investment is considered with any who want to invest successfully in the currency market.

You can accept the risk, how much loss as the market changes with the strength biên, the first major changes sometimes occur in only 5 minutes or even in 1 minute …? You really have a need to consider carefully the risks can affect each transaction that you make? In fact many people have no idea or a feeling that they need to protect themselves from the risk is not necessary. In many cases they are not understanding the risks they are having. In this article we will review the type of risk and how risk management:

- What is Risk?

- The type of risk may encounter

- The rate of risk and profit potential

- Diversifying the list of your investment

What is risk?

Either do any work and what the potential risks. Main character, your lifestyle is a big role when deciding the level of risk you can accept. For investors, risk means the loss, loss of money invested. And if the investment choices you must make formal sports are not sleeping, it shows you can accept is the level of risk is large compared with their abilities.

Ability to earn as high means high risk as well. It can see through the minutes of the fluctuation and the lever in the currency market are reasons that this market is considered to be a market investment risks high. This is clearly the investment is not like anything to risk, to them, accept a risk level promises to give them a one level higher. Some others also have ideas that higher risk means the ability to earn a higher, and also the ability to attach a greater loss. However, not the chance to make a high and always accompanied with the ability to big loss. That is the reasons why many people have to define an investment strategy and implementation of all transactions by their strategy, and it is an important affect investment results. So need to see how to apply a managed money effectively to limit the risk that you may encounter. You never have to deliberately think when you put money investment of currency market, the contract you have to work hard to make one of each? If the answer is it means you belong to the type of investors hate risk. Naturally, if not, you belong to the type of investors like venture risk. But one, whether you invest in any market from any currency, securities, goods, the future market or any one any other market, the market potential risks to anticipating, outside the predicted ability of most people when looking into it.

Types of risk may encounter in the currency market

2 form the basic risks: the risk that the system - the type of risk may affect more progressive. Examples for this type of risk that political events are global, the natural disaster or wars. Remaining type of risk is not systematic - sometimes regarded as a form of risk is individual, separate. This type of risk is of course vice versa, only affect a few types of funds, some progressive. For example, the information economy affect a country or a region that, as a strike or an adjustment in the interest of the Canadian dollar. The diverse list of investment rải are many currency pairs are not related to each other is the only way you can help avoid the risks from non-type system.

So we know through 2 basic types of risk, time to go out kĩ forms of risk.

Risk is not paid money - This is the risk that a company that you open account transactions is the ability to pay when you request cash. Many investment money can still remember the Refco to occur in 2005. It is unfortunate Refco is one of the investment under the form of the world’s largest operations with investment brokers from market goods, the future market and currency have declared bankruptcy and the longer the company’s auction sales for the company or the other. Customers can not withdraw their money and investments from the original company to the entire assets of the company is sold out. And it is still too early to say that the old customers that have received all their funds. Therefore, the choice of the appropriate broker, stability sometimes is better to select the type of companies belonging to the largest.

Risks related to the situation in the country - this risk occurs when a country is the ability to control the economic and financial stability as their own. When a country problems, the debt that will affect the financial activities in the country and other countries concerned, have relations with that country. This risk also affects the financial markets as stocks, investment funds, the right to choose, the future and most important is money in circulation, use of it. Types of risk are often found in countries everywhere, are the developments of the face of large budget shortfalls.

Risks related to currency - When investing in currencies, you must remember that the fluctuation of the exchange rate in the country will affect the cost of money in the corresponding radical. For example, the economic events, political influence pound (GBP) will affect the transaction of the Euro (such as the fluctuation of the EUR / USD will have the same reaction pair GBP / USD before the event economic, political 2 that although money is money 2 separately and not included in the Funding 1). Know the water can affect the radical is a need for that to trade successfully.

Risks related to interest rates - the increase in interest rate reduction during the transaction will affect the amount but you can pay daily to maintain order transaction. The amount of interest is known under various names such as the rollover, swap, which is the time your order is placed and the transaction because the transaction typically order your spot - immediately should not be long-time transactions, This means the broker will have to close and open again under the command of 1 period, and when to open and close commands you will have to pay or receive interest based on the difference in rates of radical you are dealing. If you are selling the type of money with higher interest rates in the progressive, you will be charged at the time of rollover based on the provisions of brokerages on rollover. To learn more about the risks related to interest rate so you will need to contact the broker to have detailed information related to time of rollover, the cost / interest that you have may be subject or be eligible and other requirements of the account.

Risks related to economic, political - this risk is often said to economic events, political water has a direct influence, to immediately change the price of money that country. For example, when the intervention of the state to maintain a low rate of yen to boost exports.

Risk Market risks relating to market - This is the type of risk that we or mentioned, or face. Market risk is the fluctuation of the progressive occur daily. The fluctuations caused by the promotion of the best from the market. Biên level fluctuation is a measure of risk because of the changes is that every time someone searches for investment opportunities, a progressive is not as stable as they have large rate fluctuations, which sometimes means is more and more opportunities for investors.

Risk Technology Risk related to technology - This is the type of risk that many investors do not discount, though that most investors personally perform transactions through the Internet, and this transaction depends to technology. Are you ever concerned that you avoid the risk that a disruption, fails the machine technology or network broken? You have a backup on the network replaced when necessary? You have backup computer when the computer that you use damaged?

As you can see there are many types of risk that an investor needs attention, careful consideration when the transaction. Estimated interest rate but also to managed care, limit the risk is that investors must always be aware.
Risk and the ability to make a

Risk and the ability to make a will create challenges for the investors. Decide the level of risk you can accept, you can even leave your computer without worry, I still night when the commands in the transaction are still being implemented are considered to bring the the most important of a trader. Ratio between risk and profit levels that are considered a trader to see the lowest risk with a high level as possible. Remember that limited risk, the more limited benefit also much smaller, enter accept high risks, the more rates also increased profit potential much. The investment transactions are related to risk and the ability to search by. The understanding and implementation of place and stop the transaction strategy (effectively) will help you limit your risk is increased when the level in a potential.

Each order transaction will put the most money? How much money you accept the loss in each order transactions? Amount of risk you’re accepting with too great? If so, you may apply the wrong way in risk management while using the rate lever in the transaction. Select the appropriate lever and the deposit - a close margin requirement and in risk management.

No one level of risk is appropriate for all

Like no 1 food that everyone likes, as such, does not have a level of risk is appropriate for everyone. Once you determine a level of risk appropriate for you. You will need to estimate the rate of risk you’re willing to bear (on center lí) and the level of risk you can accept happens in reality. Usually almost all investors are willing heart lí ready to accept the risk level 1 is, but the risks they see that they are not interested in commitment acceptable level of risk that. Survive in the currency market in the long - long term - is most important to be able to earn from the market. To do so, you need to learn the ability to accept risk. It also means you will lose money in the school, but if the loss can help you understand the market, how the transaction as you do not lose much charge "fees" this . Money costs of the financial and spiritual account is always "pay" that investors have experienced is also not the exception in the first phase to start investing.

Conclusion

Each person will be able to ready to accept the level of risk varies. The accepted risk is not a number that, it changes the skills and knowledge of you. When you become more experienced, the risk the item may also increase based on the higher strategy, the system of your transactions. But do not let this make you become ngốc nghếch while always trying to find out how a money management perfect. Achieve a rate between risk and potential benefits received will help you achieve your goals and have a delicious sleep.

Transactions

They will not risk their reputation if Internet service is not reliable and safe. In situations appear issues technical, computer temporarily stopped work, but with the system set order (ordering) of the broker (broker), the transaction can immediately call for broker to enter or exit from the transaction.

Computer system of the broker (broker Internet) are protected by firewalls to keep information about your account without observation. Concern largest broker is the safety of your account. They must perform several steps to exclude any danger which go by the trade on the Internet.

A Forex transactions on the Internet is not calling for broker. The exclusion intermediary (broker salesman) reduce costs, making the process more quickly placed orders and limited ability to misunderstandings.

*
As concentration (Focus): Instead of trying to 1 stock, 1 instrument, mutual funds or property from tens of thousands of things available on the market, the Forex transactions only focus on 1 to 4 money. The contract to change and to include Japanese Yen, the UK, and Switzerland and the Euro. Those transactions are highly successful people focus on the number of investment restrictions. The beginners Forex usually 1 to focus on money and then combine from 1 to 3 in active trading.
*
As the trend (Trendiness): In 1 time history, currency has confirmed the trend is important. Each money has "character" of its own and made only 1 trend, regardless of the transaction opportunities in diverse market characteristics Forex.

All orders must be placed through the floor transactions. For currency transactions you need 1 floor trading Forex currency. Most companies dealing with the requirements of deposit accounts vary. You need to ask them the requirements of deposit account if you want to join monetary transactions through the floor of their transactions.

Forex market is large

Because high Item: Because the Forex market is large, it is easy to account. This helps you quickly perform transactions only with 1 click in normal conditions. You can purchase immediately optional. You can never be "the" in the market. You can also set up automatic mode for floor trading ended order transactions when you achieve the desired profit (rate of interest) or close the market move against the desired (anti-hole)
*
Market 2 aspects: money is the pair of transactions, for example: urban / yen, or red / of Switzerland. Each position in relation to the sale of money and this money to buy other. If the transaction believe that Switzerland will co higher than urban rates, they can sell it and buy of Switzerland (sold soon). If people believe the contrary, they will buy dollars and sell of Switzerland (purchase and storage). Potential profits for existing exchange rate (price) always fluctuate. . Forex Transactions allow revenue from the 2 increase and decrease the value of currency-related capital. In each currency transaction, each party and have been lost.
*
Excution Quality: Because Forex very or change, most transactions can be done with the current market. In all these markets move fast, can not avoid risk in all transactions (securities, real estate, etc. …) but can be avoided by 1 several software programs of the money brokers currency, the program will notify you in on exactly before making order. You are allowed to choose to accept or avoid risk. Ability to account Forex market wider to the ability to match orders with high quality.

Transactions are confirmed immediately and transactions over the Internet in just 1 copy of the screen computers to record all the activities of transactions. Many people believe that characteristics of the transaction by the Internet more secure than using the phone for transactions. The famous manufacturers such as Charles Schwab, Quick and Reilly $ M Warehouse proposed transactions over the Internet.

Forex Basic for newbie

Why foreign currency transactions?

Here are the advantages and value of the Forex market, is the reason why people choose transactions in this market:

*
No service charge: No exchange fee, no fee payment, not government fees, no brokerage fees. Brokers will be deducted from the cost of transactions through the points "bid-ask" (average 3-5 pips)
*
Not through a set of commands: Transaction currency without intermediaries and allow customer transactions directly with the market and updated information directly on price and exchange rates of currency pairs.
*
Unlimited transactions in other markets the transaction is limited by the rate of (for example the right to choose the future for gold is 5,000 ounces). In Forex, may be dealing with only one small $ 300.
*
Low transaction fees: transaction fees for small accounts (bid / ask spread) is only about 0.1% with the conditions generally. Account the large transaction costs lower.
*
Market transactions 24h: No waiting time markets opened and closed. Transactions at Branch from noon to 6 hours EST Friday, can say FOREX market never sleeps. This is a big advantage for those who want the transaction in time or the time most appropriate day, because you can choose any transaction time (morning, noon, evening or night)
*
No one has the ability to market orientation: Forex market is too big and too many people involved who should not, whether the 1 bank, can control the value in the long term. The intervention of central banks only have effect in the short term and not effective. Central banks increasingly have less impact or interfere with the global market.
*
Access (Access): Forex is open 24h/ngay from 6g pm Sunday to about 3g pm Friday. Those transactions individual can cope with the news when it was launch than waiting for the bell is the opening of the market when other people have the same information. This allows the transaction to join before the information is detailed analysis of the transaction. Liquidity and transactions 24 hours to allow the participants to the market and exit at any time. There are many Brokerage Forex distribution in each region, the center of the market (Tokyo, Hong Kong, Sydney, Paris, London, America, etc. …) is ready to continue offering price and sold.


to be continued !!....

12 Dec 08 Forex Basic for newbie (Part 2) - Objects involved Forex

Now go on my lession………………………..

Objects involved Forex

During 10 years ago, only the "giant ga" to join a new market was. Conditions for the minimum if you want to transactions during that period that you must have from 10 to 50 million USD to start. FOREX was born at the beginning aims to meet the needs of banks and companies in the industry giant, is not the "chang tí hon". However, with the support of kì di?u Internet, the system transactions online, the company’s transactions have been formed to allow open accounts "odd" to us. Today, the brokers in the market are allowed to break the unit transactions large and allow the transaction Small opportunity to buy and sell any number of any of these values less than this (lots).

Commercial banks have 2 roles in Forex Market

1. Make transactions between the two sides became easier, for example, the companies want to exchange currency (consumers).
2. By the beginning of the buy and sell currency. Bank has role in the currency because certain people believe in the future they will have a higher price (if you buy storage) and lower (if sold soon). People statistics that 70% of the annual income of the international bank was born at the beginning of the currency. The top of the other includes the transaction was successful in the world for example, George Soros.

3 types of Forex include central banks of other countries like bank reserves federal America. Forex their participation to ensure that financial benefits of their country. When central banks buy and sell currency or foreign currency, the purpose is to maintain value for money of their countries.

Forex is very broad and there are many people involved, not a person, only banking center of the new government can control the market. Compare with the level of transactions daily average of 300 billion capital market bond and the government about 100 billion to do transactions on the stock market, the U.S. Forex is very large because the pass rate was 1.9 thousand billion capital per day ( 2006).

Means to participate in market

The word "market" is the name gently mistake in describing Forex transactions. No position money_coin.jpgtrung center for active transactions, as it has in the currency market in the future. Transactions are carried out by telephone and through computers at hundreds of locations around the world. Most transactions were carried out between about 300 international banks where large property transactions for large companies, governments and for their account. The bank continues to provide prices ( "bid" to buy and "ask" for sale) with each other and with the broader market. Only the most recent numbers from 1 in the bank was seen as the current price in the market of that money. The services report separate data provide different information about price "directly" through the internet.

All you need when the transaction is a computer, Internet connection, and the information market.

saga site

……….Go on next week, thanks for read,

CURRENCY TRADING SUMMARY – 19th June 2008 (00:30GMT)

US dollar down as credit crisis hits regional banks.

U.S. Dollar Trading (USD) with little economic data out yesterday markets were driven by equities and commodities. US stocks were down again as focus switched to the regional banking troubles hit by mortgage delinquencies. The Dow Jones touched below 12000 for the first time in 3 months. US crude inventories showed a decline of 1.2 million barrels and combined with dollar weakness sent oil higher again. In the US share markets, the NASDAQ was down 28 points (1.14%) and the Dow Jones was down 131 points (1.08%). Crude Oil closed up .29 ending the New York session at 6.20 per barrel. Looking ahead, weekly jobless claims forecasted at 375K. June Philly Fed is also released expected rebound from May’s -15 to -10 this month.

The Euro (EUR) continued to pivot the 1.5500 level as new a direction waits to be established. The Euro bounced off day lows as Oil popped higher. Further gains were tempered by newly elected Italian Prime Minister Berlusconi comment “It is unfortunate that the ECB has done nothing to stop hyperinflation of Euro”. Overall the EUR/USD traded with a low of 1.5463 and a high of 1.5538 before closing the day at 1.5528 in the New York session.

The Japanese Yen (JPY) stock market weakness failed to provide support as continued high Oil and yield differentials weighed. EUR/JPY made new multi-month highs briefly trading above 168. Overall the USDJPY traded with a low of 107.72 and a high of 108.44 before closing the day around 107.85 in the New York session. BoJ Governor Shirakawa is scheduled to speak.

The Sterling (GBP) continued to trade heavy as the BoE minutes came in 8-1 with the lone dissenter pressing for a rate cut. The Cable was lifted off lows from a higher than expected CBI Industrial Trends Orders came in stronger at +1 vs. market expectations of -12. Late day USD weakness also provided support. Governor King commented that Q2 is expected to slow considerably, further delaying any rate rises. Overall the GBP/USD traded with a low of 1.9480 and a high of 1.9610 before closing the day at 1.9597 in the New York session. Looking ahead, May Retail Sales expected to come in at -0.1% up from last months -0.2%.

The Australian Dollar (AUD) was helped to day highs as commodities bounced on general USD weakness. AUS/JPY made new multi month highs above 102. Overall the AUD/USD traded with a low of .9403 and a high .9472 before closing the day at .9469.

Gold (XAU) bounced as oil and risk sentiment started to creep into the market. Questions about the US Fed’s willingness to raise rates have improved Gold’s position as an inflation hedge. Overall trading with a low of USD0.80 and high of USD5.60 ending the New York session at USD4 an ounce.

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Euro – 1.5575
Initial support at 1.5461 (June 17 low) followed by 1.5303 (June 13 low). Initial resistance is now located 1.5552 (Jun 17 High) at followed by 1.5587 (Jun 12 high).

Yen – 107.65
Initial support is located at 106.8 (June 12 low) followed by 106.24 (Jun 10 low). Initial resistance is now at 108.61 (Feb 14 high) followed by 108.98 (Jan 14 high).

Pound – 1.9600
Initial support at 1.9472 (June 17 low) followed by 1.9410 (Jun 13 low). Initial resistance is now at 1.9612 (Jun 18 high) followed by 1.9698 (June 10 high)

Australian Dollar – 0.9455
Initial support at 0.9304 (50% retracement of the .8953 to 0.9655 advance) followed by 0.9291 (May 15 low). Initial resistance is now at 0.9491 (Jun 12 high) followed by 0.9527 (Jun 10 high).

Gold – 894
Initial support at 858 (Jun 12 low) followed by 850 (Psychological Number). Initial resistance is now at 895.7 (June 16 high) followed by 900 (round number).